Islamabad, 16 June 2025: Punjab Cement Firms have encountered a legal setback as the Lahore High Court’s full bench upheld the Punjab government’s decision to levy a 6% royalty on the ex-factory price of cement. The ruling came after manufacturers in the province had appealed against the royalty charges introduced last year.
Despite earlier industry expectations that Punjab might revise its framework and adopt a consumption-based royalty model, similar to that recently proposed in Khyber Pakhtunkhwa (KPK), no such changes have been made.
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KPK’s latest finance bill seeks to increase royalty from PKR 250 to PKR 350 per ton, specifically tied to raw material usage such as limestone, continuing its prior method without altering the calculation mechanism.
With the Lahore High Court dismissing their appeals, Punjab Cement Firms are now likely to escalate the matter to the Supreme Court in search of judicial relief.
This outcome further entrenches the regulatory divergence between KPK and Punjab, as companies operating in both provinces face differing cost structures.
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The current situation not only sustains a competitive imbalance across provincial lines but also adds to the compliance challenges faced by Punjab Cement Firms navigating complex royalty regimes.
